Crypto, in recent months, has plummeted alongside rising inflation. Bitcoin has lost more than half its value since the beginning of the year, while ETH prices are now down more than 57% year to date.
But despite several months-long crypto winter, things in the crypto market are not as bad as you may think. And here’s why 👇
1. Total Market Cap 3x More Than 2020
Even despite quite a heavy recent dropdown due to negative global macroeconomic sentiment, including the war in Ukraine, the stats are still quite promising:
- Total Crypto Market Cap is around $1T – that’s 3x more than 2 years ago, in September 2020.
- 24h Trading volume is over $104 billion roughly, compared to $63B in September 2020.
- The total Value Locked in DeFi is about $60B at the time of writing – that’s 7,5x more than 2 years ago.
- There are over 1M transactions on Ethereum daily and over 3M on BSC Chain.
- The number of blockchain wallet users has increased to 83 million as of July 2022, compared to 40 million in 2020 and 68 million in early 2021. The number continues to grow as new blockchain wallets and cryptocurrencies are introduced to the market, showing growing crypto adoption.
- Gaming blockchain technology is one of the most promising Web3 industries, with 847,230 daily Unique Active Wallets and $698 million transactions.
2. Developers’ Activity
Devs are still building; the networks are still being used. Many new projects of great value are being built, changing the landscape even more. A bear market is a less chaotic period, making it the perfect time to develop and not escape the market.
There are 4 MILLION monthly downloads for the ‘ethers’ package used by web3 devs to develop dapps and 2.4M monthly downloads for the competing web3 package.
3. Growing NFT Market
The demand for NFTs is growing worldwide, which is also one of the major factors driving the market growth:
- NFT sales grew by 23% from last month to over 7.24 million.
- LooksRare and OpenSea have done over $20 billion in NFT sales volume in 2022. Last month they showed as much as $220M and $482M correspondingly – amid a bear market.
- 53 new NFTs games were added to Chainplay over the last month only.
- 3 new NFTs marketplaces have been launched in Q2 2022 – Gamestop, Nickelodeon, and SudoSWAP.
- Global NFT market size is projected to reach US$ 7390.8 million by 2028, from US$ 1553.6 million in 2021, at a CAGR of 24.4% from 2022 to 2028.
4. Growing Number of Investors
Dozens of different new projects raise millions of dollars daily. As of July 2022, venture capital investments in the crypto and blockchain industries stood at $17.9 billion, according to JP Morgan.
That is very high relative to other years and the depression in broader crypto markets. It exceeds most prior full-year totals and represents more than 60% of the $29.4 billion VCs poured into crypto in 2021.
5. Broader Regulation and Adoption
- As regulatory certainty influences economic behavior, large economic regions like the EU and the US are providing initial direction – like the release of the Markets in Crypto-Assets (MiCA) provisional agreement in the EU and the release of the Framework for International Engagement on Digital Assets in the US.
That’s gonna facilitate stability in a volatile crypto market – protect long-term investors, prevent fraudulent activity within the crypto ecosystem, and provide clear guidance to allow companies to innovate in the crypto economy. - The results of the Chainalysis report show distributed global adoption, from Southeast Asia to Eastern Europe to Latin America, with the U.S. also moving up from last year.
The recent Ethereum Foundation’s successful completion of the Merge will likely lead to strong institutional adoption of the blockchain’s token.
Conclusion
So, as you can see, things are not as bad as they may seem. However, don`t hurry in preparation for the recovery – it may not happen as fast as many of us want.
It is always better to wait before jumping back into the market because crypto bear markets are normally 3x longer than bull markets.
Source: https://www.quora.com/Is-the-cryptocurrency-market-dead/answer/Sir-X-9
Disclaimer
Although the material contained in this website was prepared based on information from public and private sources that ampraider.com believes to be reliable, no representation, warranty, or undertaking, stated or implied, is given as to the accuracy of the information contained herein, and ampraider.com expressly disclaims any liability for the accuracy and completeness of the information contained in this website.
